An IT skills evaluation system and method for evaluating an individual's IT skills. According to one aspect of the invention, the individual is required to perform one or more practical exercises. A practical exercise is an evaluation device for evaluating not only an individual's knowledge, but also the individual's ability to apply their knowledge. One or more virtual machines are associated with each practical exercise, and the test taker must use these virtual machines to complete the exercise. In one aspect, a skills evaluation system according to one embodiment includes a testing computer on which the following software is installed: a virtual machine platform for allowing multiple virtual machines to run simultaneously on the testing computer and a practical skills evaluator for presenting exams to a test taker and scoring the exam. An exam is made up of one or more practical exercise. When the practical skills evaluator presents the practical exercise to the test taker the evaluator launches the one or more virtual machines so that the user can perform the exercise.